Tribble Agency
Tribble Agency


AB InBev raises sales outlook on premium lagers

Anheuser-Busch InBev NV, the maker of Budweiser lager and Stella Artois pilsner, raised its full-year revenue forecast on higher-than-expected shipments of premium beer. Earlier this month, Belgium-based AB InBev offered to acquire SABMiller for about $103.95 billion, but InBev may not issue its formal bid before a November 4 deadline, according to The Wall Street Journal.

Organic revenue will rise faster than inflation, the world's biggest brewer said in a statement on Friday, having previously predicted that growth will match that of consumer prices. "The dividend increase is likely to be taken well" by investors, said RBC analyst James Edwardes Jones, although he cautioned "there might be a few doubt as to how strong an indicator this should be seen as of ABI's future intentions".

"The sales guidance isn't going to blow the lights out". The combined company would control almost a third of the global market.

AB InBev shares rose as much as 2.5 percent to an 11-week high of 110.15 euros, putting them among the strongest in the FTSEurofirst 300 index .FTEU3 of leading European stocks. The rise was driven by what the company described as a favorable macroeconomic environment, and especially good performances by Corona, Bud Light and Victor. No final decision has been made and there's no certainty that the brewer will seek more time. "Here is evidence for ABI starting to achieve revenue synergies from a company they have bought in the recent past", said Mr. Edwardes Jones. But TheStreet's Scott Berman, portfolio analyst for Action Alerts PLUS, said that the thing investors should be most focused on is the proposed deal that the company has out there for U.K.-based SABMiller (SBMRY). No further information was given Friday.

Overall volumes rose by 1.5 percent in the July-Sept period, with increases in beer sales across the Americas. It has underperformed by 4.05% the S&P500.;

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